The Canadian government has restrained Nigerians, Americans and other non-Canadians living in Canada from purchasing residential properties in the country.
Investors King reports that the ban on foreigners’ purchase of private houses in Canada takes effect from January 1, 2023.
A new Canadian law, ‘Prohibition on the Purchase of Residential Property by Non-Canadians Act’ prohibits foreigners from buying residential properties for the next two years, Investors King understands.
The law, however, exempts immigrants and permanent residents as they are allowed to own housing properties.
According to a piece on the website of the Prime Minister Justin Trudeau’s Liberal Party, the law was made to reduce prices of residential properties in Canada.
The rising cost of houses was linked to foreigners’ purchase of the homes as investments leaving indigenes with no choice but to buy from them at high prices.
“The desirability of Canadian homes is attracting profiteers, wealthy corporations, and foreign investors. This is leading to a real problem of underused and vacant housing, rampant speculation, and skyrocketing prices. Homes are for people, not investors,” it read.
Investors King gathered that taxes have been introduced to non-residents and vacant properties in some cities like Vancouver and Toronto, in order to discourage foreign investors and make houses cheaper.
The Canadian Real Estate Association (CREA) revealed that average home prices from more than $590,000 at the beginning of 2022 have dropped to $465,000.
CREA expressed worry over the consequence of the law saying if the United States, Mexico and other countries enact similar laws, Canada citizens will be at the receiving end.
“Canadians purchase vacation and residential properties in many countries, but particularly in the United States. If Canada places a ban on Americans owning property in Canada, we should expect them to respond in kind,” the association said.